TL;DR
50% of all Ethereum-based transactions occurred on layer 2’s (L2s) within the first half of 2024, relatively than on Ethereum itself; which has its professionals, and its cons.
Full Story
Do you know that over 50% of all Ethereum-based transactions occurred on layer 2’s (L2s) within the first half of 2024, relatively than on Ethereum itself?
(At the least, when it comes to the whole quantity of transactions).
On one hand this can be a signal of nice innovation!
L2s can typically deal with extra transactions at a decrease value, making Ethereum-based transactions cheaper and sooner for everybody.
By shifting transactions off the principle Ethereum chain, L2s can even assist make the entire community run smoother by lowering congestion.
BUT – earlier than we get too enthusiastic about Ethereum palming off half of it’s transactions over to different Ethereum-based chains, there’re dangers to L2s too.
For instance, look, possibly it’s simply us, however the variety of L2s that’ve been launched on Ethereum feels overwhelming.
And whereas that will assist from a consumer expertise facet of issues, having so many choices can confuse customers and unfold belongings thinly throughout completely different platforms.
Additionally – the large one – many L2s depend on centralized elements, which works towards your complete decentralized worth prop of Ethereum.
Take sequences for instance (they’re the issues that resolve the order of transactions to be processed in, earlier than they’re processed).
If a single, centralized entity controls the sequencer, that introduces a crucial central level of management and a attainable level of failure.
So, whereas innovation and improved consumer experiences are nice for web3, right here’s hoping the unbelievable groups constructing L2s don’t lose sight of the unique worth prop of blockchain know-how.
And that, our mates, is decentralization.
